Annual report 2016-17 Green Alliance

Development team Senior management team Company registered number Shaun Spiers Karen Crane 03037633 Executive director (appointed June 2017) Head of communications Matthew Spencer Josie Evetts Charity registered number Director (left September 2016) Office manager and pa to the director 1045395 Leah Davis Elena Perez Registered Office Interim strategy director/acting Events manager Green Alliance, co-director (secondment ended Marta Silva 11 Belgrave Road, April 2017) Finance manager London, SW1V 1RB Sue Armstrong Brown Frieda Metternich Policy director (secondment ended Secretary Programme manager Jo Rogers, assistant director October 2016) Amy Leppanen Tamsin Cooper Communications assistant Auditors Strategy director/acting co-director haysmacintyre, (maternity leave until January 2017) Associates 26 Red Lion Square, Dustin Benton Sue Armstrong Brown London, WC1R 4AG Acting policy director (from October Paul Arwas 2016) Bankers Duncan Brack Unity Trust Bank plc, Jo Rogers Nine Brindley Place, Assistant director Chris Church Birmingham, B1 2HB Ian Christie Policy team Emily Coats Solicitors Bates Wells Braithwaite, William Andrews Tipper Jonny Hazell 10 Queen Street Place, Head of natural environment Chris Hewett London, EC4R 1BE Angela Francis Julie Hill Acting head of economics and resources The charity and company Hywel Lloyd Amy Mount The Green Alliance Trust Jiggy Lloyd operates under the working Head of Greener UK unit name Green Alliance. Paul McNamee Rebekah Phillips Head of politics Rebecca Willis K Chaitanya Kumar Dimitrii Zenghelis Senior policy adviser Libby Peake Board Senior policy adviser Dame Fiona Reynolds CBE Caterina Brandmayr Chair Policy analyst Philip Parker Costanza Poggi Hon Treasurer Policy adviser Rosemary Boot James Elliot Ben Caldecott Policy assistant Catherine Howarth Anisha George (resigned March 2017) Policy assistant Professor Mariana Mazzucato Danial Sturge Sophia Tickell (resigned July 2017) Policy assistant (left December 2016) Sir Graham Wynne Alison Austin OBE Claire Craig (appointed December 2016) David Baldock (appointed December 2016) GREEN ALLIANCE ANNUAL REPORT AND ACCOUNTS 2016-17 1 / CHAPTER TITLE

Contents

Chair’s introduction 2 1. Our aims and strategy 4 2. Political leadership 9 3. Strong analysis 14 4. Powerful alliances 27 5. Our plans for 2017-18 30 6. Finance and fundraising review 33 Thanks 40 Members 41

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This was a year of challenge but also of great opportunity for Dame Fiona Reynolds Green Alliance. Upheaval in the political landscape, with the EU Referendum vote, a new guard in government, along with Chair protracted delay in major expected plans, from the carbon plan to the 25 year plan for the environment, were all factors that could have derailed our work this year. But politics is our business and we were already on the front foot in June 2016. Anticipating the possibility of a vote to leave the EU, we gathered strategists from across the environmental sector, well in advance of the referendum, to consider the impact and plan a response. The subsequent formation of the Greener UK coalition immediately after the referendum vote was led by Green Alliance, and has grown into an unprecedented collaboration of environmental groups across a broad spectrum of issues and interests. Green Alliance houses the unit co-ordinating the wider activity of Greener UK, a coalition of 13 of the major environmental NGOs and a host of associated networks and partnerships. We have been ahead of other sectors in developing

Photo: David Levenson David Photo: forensic understanding of the parliamentary and legal processes of Brexit. This expertise has enabled us to stay alert to its consequences and possibilities and has established Greener UK as a major force working for the best interests of the UK environment throughout this tumultuous time. From a position where the environment was initially not on the radar at all, Greener UK secured a commitment from the prime minister early on that the government will maintain existing environmental protections beyond Brexit. This was a significant moment and I am extremely proud that we were at the heart of making it happen. It puts us, and the environment sector, in a much stronger position to influence the many decisions which will have to be taken in the years ahead. Despite the magnitude of the Brexit agenda, it has only been one dimension of our work this year. We are acutely aware that Brexit will be a relatively short phase in political history and that we must keep our eyes on the horizon beyond. The government will need ideas to formulate new policy post Brexit and keep the UK’s longer term low carbon transition on track. The big prize, however, will be embedding a positive vision for the UK’s future, underpinned by strong environmental and social protections. At Green Alliance, we strongly believe that the UK will only prosper as a nation by aiming high and aspiring to lead the world in having a thriving natural environment, clean air and water, and a low carbon, resource efficient economy. And our politicians must own this vision. Leaving the European Union provides an opportunity to rethink how we do things in many areas. During the year we have received acclaim for original ideas around farming and land management, aiming to profit farmers, while protecting

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“The UK will only prosper as a communities from flood risk and improving the natural environment. We’ve suggested a shake up of England’s recycling nation by aiming high and system, in a way that would reduce the cost burden on local aspiring to lead the world in authorities. And we have outlined a futureproof framework for having a thriving natural the new industrial strategy, highlighting that it can only succeed in the long term if it focuses on low carbon development and environment, clean air and resource efficiency. water, and a low carbon, We continue to grow our network, and are forming interesting new partnerships, for instance with leading food resource efficient economy.” retailers, land managers and tech companies. And all this incredible progress was achieved at a time when Green Alliance was without an executive director for nine months. Our departing director, Matthew Spencer, left a thriving and energetic organisation. The trustees were keen to find someone with the vision and political astuteness to take us forward into our next phase in the face of such huge political change. It took us a while to find the right person, but I am thrilled to say that we did and, in June 2017, we appointed Shaun Spiers, former director of the Campaign to Protect Rural England. I would like to thank the staff team, who not only held the fort but drove the organisation forward so skilfully, with dedication and resilience, in the intervening months. Particular thanks go to the senior management team: Tamsin Cooper, Leah Davis, Jo Rogers and Dustin Benton, and also to my fellow trustees who supported the staff during this period. I am also enormously grateful to our many members, partners and funders for their continued belief in Green Alliance’s unique role, at a time when I feel it is needed more than ever.

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Green Alliance is an independent think tank with a powerful network of business and NGO partners. Our work leads to greater political support for environmental solutions in the UK. We believe that pluralist politics, informed by strong analysis, dialogue and public participation creates better policy, and is a powerful route to a greener future and better lives. Active leadership from politicians, civil society 1 and business can accelerate this process by ensuring that Our aims it is fair, has a shared goal and creates a stable investment environment. The conviction that better lives and a better future can and only be achieved by respecting the value and constraints of the natural environment is the defining belief of our strategy staff, trustees and network. The outcome of the EU referendum in 2016 led to a necessary rethink of Green Alliance’s strategy, as the vote to leave the EU has significant implications for all areas of our work. The reorientation of our plans means that we have a new strategy for 2017-20. Our priorities for the next three years are to secure the best deal for the environment as the UK leaves the EU and to build political support for a vision of the UK as a nation aspiring to lead the world with a thriving natural environment, clean air and water, and a low carbon, resource efficient economy, and to ensure that domestic policy is ambitious enough to achieve it.

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Our objectives

Green Alliance works through well networked advocacy, being a trusted intermediary and focusing on outcomes that work for all sides. Through effective politics, smart communications and strategic alliances with our growing network of partners, over the next three years we will be working to build the political saliency of the green agenda in the UK. Three objectives are driving our activity to 2020: __ To catalyse political support for our vision of a ‘high standards UK’, with strong, green ambitions at its heart. __ To secure a good deal for the environment as the UK leaves the European Union. __ To influence ambitious domestic policy for a low carbon, resource efficient economy and a prospering natural environment.

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Our activities

We pursue our aims in three ways: __ Inspiring new leadership: we support effective political leadership for the environment by advising on and influencing key political processes, and engaging and informing leading political thinkers and senior politicians on environment issues. __ Undertaking strong analysis: we carry out research and analysis to provide robust evidence for alternative policies that work for government, business and the environment. __ Creating powerful alliances: we are supporting the NGO and business sectors to ensure their voices are heard on issues related to the protection and improvement of the environment. We work with a range of leading companies, offering them the opportunity to share their experience and work in partnership with us on new approaches to environmental policy. We also regularly facilitate joint messages to government from the major environment and development NGOs, ensuring their collective view on important issues is clearly represented and heard. Our activity in 2016-17 was organised under the following themes: Political Leadership: offering political intelligence to, and working with, our partners in business, NGOs and all the main political parties, to put environmental priorities at the heart of political decision making. Low Carbon Energy: providing evidence and ideas to support the renewal and rapid decarbonisation of the UK’s energy infrastructure. Resource Stewardship: working to increase UK economic resilience by ensuring resources stay productive in the economy for longer, for the benefit of both business and the environment. Natural Environment: building new alliances between businesses and NGOs to explore new policy which will ensure that, by 2025, the long term decline in the UK’s natural environment is arrested and reversed.

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UK environmental groups tracking Brexit impacts Impact We co-ordinated the creation of Greener UK, a new coalition of major environmental groups focused on achieving a good outcome for the environment during highlights Brexit. In its first six months, Greener UK secured a baseline commitment from the government that it would 2016-17 continue with existing environmental protections after Brexit. See page 10 Government climate ambitions With concern growing in early 2016 about the progress of the government’s climate ambitions, we worked closely with MPs and the environment sector to urge the prime minister to pass the fifth carbon budget, setting carbon targets into the 2030s. The government approved the budget in July 2016. See page 12 Advice on clean growth We were called on to advise the Department of Business, Energy and Industrial Strategy as part of a small stakeholder group being consulted on the development of the clean growth plan. See page 13 Analysis on renewables investment Our analysis that government investment in renewable energy would fall by 95 per cent by 2020 was widely reported in the media. See page 16 Mapping local renewables progress Regional media covered the update of our Renewable Energy Locator interactive site which showed how different areas in England and Wales were performing on renewables. See page 16 The cost of poor recycling Our Circular Economy Task Force reported that inconsistent recycling was costing councils millions of pounds and that leaving the EU is an opportunity to rethink the system. See page 18 Framing for the new industrial strategy We provided advice and commentary on resource productivity and low carbon opportunities for the industrial strategy. Our framing was adopted in the government’s industrial strategy green paper in January 2017. See page 22

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New ideas on food production and the environment The Parliamentary Office of Science and Technology adopted ideas from our study of the impact of food production on the environment in its advisory note on environmentally sustainable agriculture. See page 23 A solution to flooding Our Natural Infrastructure Scheme concept has interested policy makers, conservationists and land managers, with water companies, national parks and others asking to participate in our proposed pilot scheme. See page 24-25 Leading commentary Views on our blog, Inside Track, rose by nearly 40 per cent this year and it was highly commended in the 2017 UK Blog Awards. See page 26

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2Political leadership

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We believe effective political leadership is essential for Influencing Brexit outcomes an ambitious, coherent In advance of the EU referendum we gathered influential voices, including senior Conservatives, to make the environmental agenda in environmental case for the UK staying in the EU. We also the UK. co-ordinated a letter to The Guardian from 11 senior climate advocates, including Lord Deben, Lord Turner and Sir Crispin Tickell, in which they voiced their concerns.

‘MPs warn vote to leave EU would threaten A MANIFESTO UK environmental policy’ FOR A The Guardian, 19 April 2016 GREENER UK Before the June 2016 referendum, we worked closely with colleagues in other organisations to understand what either outcome of the vote would mean for the political landscape and the environment sector. After the referendum, we were quick to act and co-ordinated the new Greener UK coalition, leading its launch in December 2016. This collaboration of 13 major environmental organisations has a joint strategy to maintain and strengthen environmental protections during the GREENER UK Brexit negotiations. Momentum behind Greener UK has grown and, as well as the 13 coalition partners, 23 other environment groups now support the initiative. Greener UK also collaborates with four other major environmental networks. ‘We are 13 of the UK’s leading environmental organisations, with a combined membership of 7.9 million, who have come together as Greener UK to ensure that our environment is restored and enhanced as we leave the EU … We urge the prime minister to … make sure that its current protections are not lost. The UK can be home to thriving wildlife and beautiful landscapes and should continue to be one of the best places in the world to live, for this and future generations.’ Greener UK letter to The Times, 8 December 2016

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The Greener UK coalition wrote to Theresa May shortly after she became prime minister, setting out the sector’s priorities following the referendum. By the summer of 2017, 180 MPs of all parties had signed up to Greener UK’s Pledge for the Environment, committing to support environmental protection and action on climate change as Brexit progresses.

MPs’ Pledge for the Environment

I believe that following the triggering of Article 50, the UK government, working with administrations in Belfast, Cardiff and Edinburgh, must build a healthy and prosperous future for all.

This means a thriving natural world on land and at sea, clean air and water, communities connected to nature, and a sustainable econo my.

For the wellbeing of my constituents, for people at home and abroad, and for future generations who will depend on a flourishing and secure planet, I will do everything in my Rt Hon Hilary Benn MP, speaking at the launch power to: of Greener UK’s manifesto in February 2017 • Establish the UK as a world leader on the environment by committing to match or exceed current environmental, wildlife and habitat protections. • Ensure the UK leads on climate change by publishing robust low carbon investment plans and driving the Paris Agreement’s implementation internationally. • Create a countryside richer in nature by supporting farmers and landowners to deliver environmental benefits alongside a thriving farming sector. • Make the UK a world leader in innovative and sustainable marine and fisheries management.

In February 2017, Greener UK launched its manifesto at an event in parliament, setting out its priorities to more than 40 parliamentarians, covering four distinct areas: climate and energy, farming and land, fishing, and wildlife and environment laws. Greener UK was welcomed in speeches by George Eustice MP, Defra minister of state, and the Rt Hon Hilary Benn MP, chair of the Exiting the EU Select Committee. Greener UK secured a baseline commitment from the government that existing environmental protections would continue after Brexit. Although the environment was not listed as a negotiating priority in the prime minister’s first major speech on Brexit, it is clear that the environment is an issue capable of mobilising concern within parliament.

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Securing the fifth carbon budget Tory MPs tell Cameron to In 2014 Green Alliance succeeded in rallying the support of businesses and civil society to avert the threat of weakened accept steep cuts needed for government climate ambitions under the fourth carbon UK’s fifth carbon budget budget. In 2016, the Committee on Climate Change (CCC) proposed its next carbon budget (the fifth carbon budget, for The Guardian, 5 May 2016 the period 2028-32). We provided intelligence for colleagues in the environment sector on the government’s approach and, in May 2016, we worked with the MP Graham Stuart, convening a letter from 20 Conservative MPs to Prime Minister David Cameron, urging him to accept the CCC’s advice in full. We were pleased that the government approved the CCC’s advice in July 2016.

Parliament formally approves fifth carbon budget Business Green, 20 July 2016

Working with local MPs

Our policy insight, Greening devolution, published in spring 2016, A new agenda was the result of two workshops held with local MPs, their for city transport constituents and other local stakeholders in Cornwall and Greater Manchester. It explored how devolution could improve local leadership on energy, climate adaptation and nature protection. We discussed its conclusions, including the need for a more strategic vision for devolution, with Andrew Percy MP, the minister for local growth and the Northern Powerhouse at the Department for Communities and Local Government. A further two workshops, on transport and air pollution in south London and Manchester, involved local MPs, businesses, local authorities and health specialists. These workshops introduced important cross sectoral perspectives and opened up new channels of communication, particularly between health, transport and environmental professionals. The Manchester workshop provided input to Transport for Greater Manchester’s strategy at an early stage of its development, focusing on how to develop low carbon transport. The workshop conclusions, including the need to integrate air pollution and climate change strategy, were published in the report A new agenda for city transport, discussed at a roundtable for MPs in early 2017. This report has contributed to the ongoing debate around air quality, and the role MPs can play.

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The plan for clean economic growth

Will the UK economy succeed in a low carbon world?, our report with Future low carbon CAFOD, Christian Aid, Greenpeace, RSPB and WWF, raised investment in the UK Priorities for the government’s concerns about the UK’s future status in the global low carbon climate strategy economy. It included recommendations on how the government could restore the UK as a low carbon market leader. This message was the subject of a piece in the Daily Mail and was supported by Lord Mandelson, who spoke at our debate on the subject in June 2016, along with the ex-CEO of National Grid, Steve Holliday, and experts from EY and Arup. “The global low carbon transformation will be one of the big drivers of the world economy in the 21st Century. At COP21 in Paris, the UK government showed bold global leadership. This analysis highlights it needs to demonstrate equally bold leadership to make sure decarbonisation isn’t a missed opportunity for business and prosperity in the UK.” Lord Mandelson, commenting on our report Will the UK economy succeed in a low carbon world? in June 2016 Priorities for the government’s clean growth plan, due in autumn 2017, were set out in Future low carbon investment in the UK, also co-produced with our NGO coalition. This focused on actions needed in the transport, heat and power sectors to ensure the UK meets its decarbonisation goals and stays ahead in the global low carbon markets. The report formed the basis of advocacy with ministers and MPs, including two roundtables for Conservative and Labour MPs involved in the plan’s development. These were well attended and hosted by the MPs James Heappey and Lisa Nandy. Some of the Labour MPs at the roundtable subsequently raised questions in parliament on the clean growth plan and reflected our concerns. In early 2016, Green Alliance was called on to advise the then climate change minister, Nick Hurd MP, as part of a small stakeholder group consulted on the development of the clean growth plan. We were one of only two NGOs invited to join the group. This set a precedent for longer term engagement as, under the new minister, Claire Perry MP, our new executive director, Shaun Spiers, has been invited to continue as a member of the group.

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3Strong analysis

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Low carbon energy The renewal and rapid Smarter investment in energy decarbonisation of UK’s Focusing on the government’s energy investment plans, we argued that existing plans for the capacity market, via which energy infrastructure is one the government procures future energy sources, could lead to of the biggest political and new gas plants being built, which may then have to be shut prematurely to meet decarbonisation goals. We proposed a economic challenges of our more cost effective strategy focused on smart technology time. We are working with meeting energy demand with a combination of system flexibility and zero carbon energy sources into the 2020s. Smart leading businesses and investment: valuing flexibility in the UK electricity market, published in October 2016, was backed by our low carbon energy NGOs on the policy consortium of businesses: Statoil, National Grid, E.ON and frameworks necessary to Siemens. ensure there is sufficient investment and support for innovation.

“A lack of strategic planning is creating risks to the system” James Murray @James_BG Fascinating @GreenAllianceUK report out Phil Graham, chief executive of the National Infrastructure today on capacity market and age of Commission, at Green Alliance’s event ‘Everyone wants flexibility. smart power, but where’s the market?’, 13 October 2016 Tweet on our Smart investment policy insight by Business Green’s editor, James Murray

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“Green Alliance always produces insightful and Tracking infrastructure funding impactful research that drives Our conclusion that government investment in renewable the debate forward. They have energy would fall by 95 per cent by 2020 was widely reported in the media. A Green Alliance briefing, published in January a first class team and 2016, looked at the government’s latest infrastructure pipeline, are always a pleasure to work setting out its plans for future projects and spending. with. They are undoubtedly a leader in their field.” Renewables investment ‘dramatic fall’ Andrew Georgiou, public affairs warning manager, E.ON New Civil Engineer, 6 January 2017

Renewable energy across the regions

We updated our Renewable Energy Locator interactive website in 2016, to reflect changes in renewable energy generation across England and Wales and demonstrate the extent to which Wales leads the way on renewable energy is now distributed throughout the regions. It revealed that two counties in Wales had improved most for renewable energy both solar and onshore wind generation and Cambridgeshire ITV News came top overall for onshore wind power, with a total of 235MW installed, enough to power more than 146,000 homes. The Renewable Energy Locator has been well publicised Cambridgeshire is third most in local media and appeared as a special feature on ice cream improved county for company Ben & Jerry’s website, highlighting local renewables renewables progress progress. Cambridge Network

Wiltshire a top performer with solar power Spire FM

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Supporting clean energy campaigning

We created an infographic for The Climate Coalition’s Week of Action in October 2016. It was used to help campaigners interact with MPs during the week and graphically demonstrated the case for the coalition’s ‘100% clean’ vision.

One company alone, DONG, will have committed £6 billion to develop offshore wind in the Humber region by 2020.4 And investment creates jobs: the renewable 100% industry employed an estimated 117,000 CLEAN ENERGY people in the UK in 2015.5 2015 IS POSSIBLE. Investment in renewable energy £15.2bn HERE’S HOW. 2014 £11.3bn 2013 £9.7bn 2012 2010 2011 £8.1bn £7.2bn £7.2bn Other Energy smart technologies

Wind

Solar

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Resource stewardship Understanding what Brexit means for We promote the resources policy development of a circular We are monitoring the impact of the UK’s departure from the economy in the UK, in which EU on resources policy. At our expert panel event, ‘Prosperity resources are sustainably after Brexit’, in September 2016, business leaders discussed objectives for future UK resource policy and how the industrial sourced and kept productive strategy could help to achieve them. in the economy rather than The fourth report from our Circular Economy Task Force, Recycling reset, highlighted in January 2017 that, as the UK leaves wasted, reducing problems the EU, there is an opportunity to rethink the household of waste disposal and over recycling systems and consider what makes most economic sense, rather than just what is needed to meet targets. extraction. It showed that public money spent on recycling is effectively subsidising poorly designed products and inconsistent collections, with a disproportionate burden falling on local councils. We made recommendations for the UK, based on examples of successful approaches from around the world. The report was well received by businesses and the media. On the back of this work we were asked to provide comment for features about recycling on BBC online, 5live and BBC Breakfast. Recycling reset How England can stop Boost recycling with rubbish bin charges, subsidising waste The Times, 9 January 2017

“Your report brings out a number of key strategic benefits that could be achieved through an alternative approach and will be a very useful reference for our discussions.” Phil Conran, director, 360 Environmental

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Getting it right from the start Developing a circular economy Getting it right from the start for novel materials In a project supported by Innovate UK, the High Value Manufacturing Catapult and the Engineering and Physical Sciences Research Council, we studied the potential for new materials and technologies to contribute to the circular economy. Our report Getting it right from the start in February 2017 showed, using the examples of carbon fibre, 3D printing and bioplastics, that considering the whole life of a product, including its disposal, at the early development stage, raises resource productivity and, therefore, improves business returns over the long term. We offered a new methodology for assessing end of life options for new materials. We presented this analysis to a number of major business conferences over the year, including an international carbon fibre conference in Hanover, Germany. “This report is a timely reminder of the need to incorporate circular economy thinking into materials development to make the best use of our resources.” Katie Daniel, Manufacturing the Future theme lead, Engineering and Physical Sciences Research Council

A better deal for consumers

One focus of our work on the circular economy is around improving the perception of ecodesign, as an important means of reducing resource use and unnecessary costs to consumers. Our May 2016 study of O2’s experiences in adapting to a more circular business model, The end of the upgrade?, showed that people are keeping their mobile phones for an average of six months Over 75 per cent A two year old longer than previously reported. Sim only customers, who tend of Android users iPhone with to keep their phones longer, are cutting their carbon footprints run outdated and software support insecure software, retains nearly half by 44 per cent on average, compared to those who buy their even though their its original value. phones on contract, who typically upgrade every 1.8 years. phones are less than two years old. And, in Better products by design, in October 2016, we highlighted how failing to prioritise ecodesign was leading to a poor deal for consumers in general, with shoddy products and higher costs. We discussed it with key stakeholders at an event in Brussels and made recommendations for the European Commission’s circular economy package. The commission has From The end of the upgrade, May 2016 subsequently adopted resource productivity requirements into its regular ecodesign process.

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European action on waste

Green Alliance founded and now leads ACES, the pan-European Alliance for Circular Economy Solutions. ACES meetings were held with member state representatives and MEPs on strengthening the ambitions of the EU’s circular economy package, with a particular focus on the draft waste directives and the EU’s Circular Economy Action Plan. In January 2017, the European Commission published its first review of its progress in implementing the action plan. Our report card on the plan, on behalf of ACES, evaluated how well it was doing in key sectors and was featured in media coverage. Green Alliance is also a founder member of the North Sea Resources Roundabout, a pioneering international approach to harmonising waste regulations to facilitate the trade in end of life products and materials. Other partners in this initiative include the British, Dutch, French and Flemish governments, the Dutch environmental NGO Natuur & Milieu, and private sector partners. Unfortunately, Brexit has stalled the UK’s participation in this initiative. Once the nature of the UK’s relationship with the EU is clear, we hope there may be scope to resume engagement.

The plastic problem

In 2016, we held a series of meetings, on behalf of ACES, with the European Commission on issues around plastics and the environment, ahead of the publication of the EU plastics strategy. A briefing, by ACES partner IEEP, provided the background information for a Green Alliance infographic on plastic litter in the sea which was widely shared on Twitter and Facebook, where it reached 17,500 people. Our article on the problem for Euractiv was also shared widely, including by the EU Commissioner Karmenu Vella.

“An important article on marine litter by Green Alliance” Comment on Facebook by Karmenu Vella, European Commissioner for environment, maritime affairs and fisheries

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What happens to plastic in the sea?

> .cm ‹% Litter on beaches Local authorities each spend around 6% On the surface €173,000 a year cleaning beaches

< .cm % Beverage litter 33%

Entanglement 94% Underwater 136 species are affected, including 79% Most plastic debris Some of this fragments, of seals and 86% of sea turtles ends up underwater risking ingestion and Swimmers and divers are at risk and we know very entanglement Tyre dust 18% little about where it goes or what harm it causes Ingestion 70% eventually sinks to the More than 250 species have plastic in their Maritime sea floor, with unknown stomachs, including 98% of North Sea gulls waste 11% consequences European shellfish consumers ingest around 11,000 pieces of microplastic per year A plastic microbead can be a million times more Nurdles 9% toxic than the water around it

Synthetic fibres 9%

Other plastic litter 9%

Cigarettes 5%

Plastic dust 4% Plastic bags 1% Microbeads 1%

Green Alliance graphic shared on social media in March 2017

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What a successful UK industrial strategy needs to do

UK decarbonisation policy

Double down FocusHighlighting on sectors where why we need a low carbon, Emissions Product Vehicle Building Infrastructure reduction plan standards excise duty codes decarbonisation creates conditionsresource to grow world efficient industrial strategy class competitive businesses and new industriesIn an in ongoing the UK programme of work focused on the Futureproofgovernment’s new industrial strategy, we engaged regularly Target high productivity sectorsthroughout so they can respond the year with senior civil servants and ministers in to new opportunities and stay competitivethe Department in a low carbon, for Business, Energy and Industrial Strategy, as resource efficient global economywell as with other parliamentarians, business representatives and unions. We have been called on to provide commentary Financial and Construction Agritech Offshore wind Automotive Raise the baseline business services Driveand energy speak and resource at events on this issue, and our framing around Vertical industrial strategy efficiency across the whole economyresource to help businessesproductivity and low carbon opportunity was develop new products and processes,reflected to lower in costs the and government’s industrial strategy green paper, increase competitiveness Energy Resources Skills Capital Start ups Innovation Competitive markets published in January 2017, with particular references to low Horizontal industrial strategy carbon energy, focusing on developing battery technology and Illustration from our report Why a electric vehicles and the opportunities of resource and energy successful industrial strategy will be low efficiency to raise productivity. carbon and resource efficient, January 2017

Improving productivity with a circular economy

An ongoing theme of our work on resources is the relationship between a circular economy and productivity. We held a roundtable in May 2016 for leading economists and resource experts to look at how resource productivity and labour productivity interact. It produced wide agreement that this underexamined relationship is a barrier to integrating the circular economy concept into mainstream economic thinking. The overall conclusion was that there was a compelling case for improving productivity in the UK via a more circular economy, through increasing industrial efficiency, replacing virgin material imports with domestic recovered sources and new business models to retain more value in products and their components. The findings of this roundtable are now informing our and others’ work on industrial strategy.

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Natural environment Arresting the long term Protecting future food production decline of the natural In February 2017, we demonstrated how degraded land on UK farms is increasing the cost of food production and stacking up environment is a complex risks for the food industry in our report Natural investment: problem and leaving the EU futureproofing food production in the UK. We recommended that the government act as a broker for a Sustainable Food Pact between presents new challenges farmers, food manufacturers and retailers. We also advocated and opportunities for the the introduction of Natural Capital Allowances, a new form of tax relief for farm businesses. Our report was launched at a UK in this area. We are dinner hosted by former Defra secretary of state, Dame Caroline Spelman MP and attended by representatives of building powerful alliances supermarkets, food brands, restaurants and food and farming and seeking new political sector experts. The Parliamentary Office of Science and Technology leadership to ensure that, incorporated a number of our ideas in its advisory note on by 2025, Britain’s natural environmentally sustainable agriculture. Specifically, it featured our idea of tax relief to stimulate investment into environmental environment will be in much restoration. better health. “I welcome this report’s focus on the need for farmers, food companies and supermarkets to work together to find solutions to environmental challenges that meet everyone’s needs.” David Fursdon, farmer and chair of the 2013 Defra- sponsored Future of Farming Review

Natural investment Building from this work, which was supported by Nestlé, we Futureproofing food have since launched a new Food and Nature Task Force to look production in the UK at the implications of Brexit for the resilience and sustainability of UK food and agriculture. This business task force, whose members are Nestlé, Tesco, Sainsbury’s and the Co-op, aims to offer new insights and partnerships to ensure that post-Brexit policy delivers a thriving natural environment and resilient food and farming industries.

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“Green Alliance’s work always encourages and challenges us A new natural environment advisory board to explore new approaches to We have established an advisory board as a forum to challenge solving old problems. Their us and help shape our programme of work on the natural environment. Its members are experts from a range of relevant work on Natural Infrastructure sectors, they are: Hugh Raven, conservationist and managing Scheme is a good example director of the Ardtornish Estate; Peter Unwin, chief executive that requires a rethink on the of the Whitehall & Industry Group; Tony Grayling, director of sustainable business and development at the Environment way we invest in farming and Agency; and Janet Dwyer, professor of rural policy and director the natural environment.” of Countryside and Community Research Institute at the University of Gloucester. The board is chaired by David Ece Ozdemiroglu, founding director, Baldock, former executive director of the Institute for eftec environmental consultancy and European Environment Policy and a trustee of Green Alliance. member of the Committee on Climate Change’s Adaptation Sub-Committee New markets for land and nature

In partnership with the National Trust, we developed a new concept to enable a private market for land management to improve flood resilience and water quality, and deliver other ecosystem services, while providing a viable return for farmers. New markets for land and nature, published in September 2016, outlined our idea for a Natural Infrastructure Scheme (NIS). It has generated significant interest among both policy makers and land managers, with requests to present it to the Department for Environment, Food and Rural Affairs, the Committee on Climate Change and at a number of private sector conferences. Water companies, national parks and other organisations have asked to participate in pilot schemes which New markets for will demonstrate the NIS in practice. In 2017, we expanded land and nature the project partnership to include four companies: Interserve, How Natural Infrastructure Schemes could pay for a Southern Water, United Utilities and Wessex Water. We are now better environment considering potential areas for an initial NIS demonstration project.

24 GREEN ALLIANCE ANNUAL REPORT 2016-17 3 / STRONG ANALYSIS

Better ways to manage flood risk

In Smarter flood risk management in England, September 2016, we analysed public spending related to flooding and identified that almost four times as much money is spent on land management that ignores or even increases flood risk, than on land management that helps to prevent flooding. Our findings were the subject of a feature by BBC News. Patrick Begg, rural enterprise director at the National Trust, speaking at our event ‘Can natural markets benefit business and the environment?’ “Our work with Green Alliance suggests in September 2016 that it should be possible to set up a market for services from farming that today go unrewarded, reducing flood risks, improving water quality and boosting biodiversity.” Patrick Begg, rural enterprises director at National Trust

How land management affects river flooding

Bare slopes speed up Trees and vegetation overland flow slow water flow

Intensive drainage feeds streams Healthy soils absorb more water

Straightened, dredged rivers flow faster

Meandering rivers flow more slowly Compacted soils increase run-off Wetlands retain water

Floodplains provide space for rivers to overflow safely Banked sides raise water levels

Environmentally sensitive land Environmentally management reduces harmful land flood risk and management directly increases resilience increases flood risk

From our policy insight, Smarter flood risk management in England, September 2016.

3

25 GREEN ALLIANCE ANNUAL REPORT 2016-17 3 / STRONG ANALYSIS

Award winning blog

In a year of fast moving politics, our blog Inside Track provided a unique channel for commentary and opinion, particularly helping people to understand the environmental implications of Brexit for a range of issues. Guest writers included London Mayor Sadiq Khan, Lord Deben, Sir Crispin Tickell, Lord Mandelson and Helen Hayes MP. The readership grew significantly over the year and we were proud to be awarded highly commended in the 2016 UK Blog Awards.

The blog in numbers, 2016-17

blogs posted 109 38% on the previous year

blogs from external contributors 58 41% on the previous year

views 79,447 37% on the previous year

visitors 45,973 32% on the previous year

26 GREEN ALLIANCE ANNUAL REPORT AND ACCOUNTS 2016-17 1 / CHAPTER TITLE

4Powerful alliances

27 GREEN ALLIANCE ANNUAL REPORT 2016-17 4 / POWERFUL ALLIANCES

Greener UK coalition

Green Alliance is a member of the Greener UK coalition of 13 major environmental organisations, united in the belief that leaving the EU is a pivotal moment to restore and enhance the UK’s environment. The Greener UK unit is based at Green Alliance. GREENER UK

NGO partners 2016-17

28 GREEN ALLIANCE ANNUAL REPORT 2016-17 4 / POWERFUL ALLIANCES

Business partners 2016-17 ACES

Low Carbon Energy consortium The Alliance for Circular Economy Solutions (ACES) is a powerful advocate for ambitious resource policy in Europe, founded by Green Alliance in 2015. Led by a group of influential Belgian, Dutch, British and German think tanks and business networks, its goal is to secure policies to improve resource efficiency and competitiveness across Europe. For more information about ACES work this year see pages 22-24.

Our partners in ACES are:

Circular Economy Task Force

Business Circle members For over 25 years, progressive companies have come together through our Business Circle to share insights, debate policy and engage with stakeholders on business critical sustainability issues.

29 GREEN ALLIANCE ANNUAL REPORT AND SUMMARY ACCOUNTS 2016-17 1 / CHAPTER TITLE

5Our plans for 2017-18

30 GREEN ALLIANCE ANNUAL REPORT 2016-17 5 / OUR PLANS FOR 2017-18

In 2017-18 we are working with the Greener UK New leadership coalition to get the best Greener UK The Greener UK coalition is running a comprehensive deal for the environment programme of activity focused on Brexit. It is engaging closely from Brexit. With our with ministers and senior officials, and continuing to sign MPs up to the Pledge for the Environment. It is highlighting risks NGO partners, we are with quarterly updates to its online Risk Tracker, covering a influencing government wide range of environmental legislation in key areas. Greener UK is also following the progress of the government’s policy for an ambitious Withdrawal Bill and trade negotiations. The Greener UK unit is based at Green Alliance and, in 2017, two new staff for the clean energy transition. unit will be employed to enhance its communications capacity We aim to instil low carbon and parliamentary work. and resource efficiency NGO climate project as underlying principles Green Alliance’s NGO climate project will continue to work towards ambitious climate leadership at a senior government of new government plans level. Making use of the current flux in the political landscape around industrial strategy we will make several interventions over the coming year that connect climate leadership with salient issues. We will release a and infrastructure. And we stocktake in the autumn focused on the low carbon will continue to develop our opportunities available to the government in decarbonising markets around the world, as well as the benefits these bring to ideas around new markets domestic industries. We will also plan to hold a major event on for environmental solutions the political, business and moral case for international leadership on climate. to flooding and work to Clean Growth Plan secure a strong 25 year In conjunction with our NGO coalition, we are concentrating plan for the environment. on communicating the opportunity of the government’s Clean Growth Plan, due autumn 2017, to ensure ambitious climate targets are met and that it is integrated with the new industrial strategy to develop a resource efficient, low carbon economy for the future.

31 GREEN ALLIANCE ANNUAL REPORT 2016-17 5 / OUR PLANS FOR 2107-18

Strong analysis

Adapting the power system for the future Our work on what is necessary to adapt the UK’s power system to small scale, distributed energy technologies and electric vehicles will focus on new policy needed to balance the electricity grid and keep energy bills low.

Devolution as a source of progress We are working on the prospects for devolution and city-level government to drive forward environmental progress in the regions, with projects around the opportunities for new metro mayors in six UK cities and insights into how to reduce consumption-based carbon emissions in cities.

Powerful alliances

Influential partnerships to support better land management With our new Food and Nature Task Force, including major food retailers, we will be exploring how leaving the EU will influence the future sustainability of food production.

Taking a NIS from concept to reality Our idea for a Natural Infrastructure Scheme has caught on, and attracted the interest of government, farmers and businesses. We are now working with the National Trust and others on putting it into practice

A business perspective on resources policy With our Circular Economy Task Force we are mobilising business and regional voices around driving manufacturing competitiveness through energy and resource efficiency. We are also exploring how this can be enabled by digital technologies with a new Tech Task Force.

32 GREEN ALLIANCE ANNUAL REPORT AND ACCOUNTS 2016-17 1 / CHAPTER TITLE

6Finance and fundraising review

33 GREEN ALLIANCE ANNUAL REPORT 2016-17 6 / FINANCE AND FUNDRAISING REVIEW

Income Treasurer’s report

The vote to leave the European Union in June 2016 had a Public sector % Individuals % Fundraising % Governance % significant impact on Green Alliance. As expected, the political Business % NGOs % backdrop changed and, with that, concerns around political and economic stability created a challenging funding landscape. Green Alliance reacted proactively to the Brexit vote by launching a Brexit response strategy and the Greener UK coalition, and securing the support of the sector. It meant that Green Alliance increased the volume of its political work and engagement with environmental NGOs. The success of this can be seen in the 70 per cent increase in income for the work under our Political Leadership, from £240k to £412k. This increase in income was offset by lower income for our Resource Stewardship theme, with planned reduced second year funding for the ACES programme (£100k), and a reduction in income for the Natural Environment theme, as £100k was Trust % received in the previous year for expenditure within 2016-17. Total income was £1,200k compared to the previous year’s income of £1,458k. Charitable expenditure % Expenditure in the year was £1,494k, £220k more than in 2015-16. This was partly due to building up a higher than usual general and restricted fund in 2015-16, but was also because of the planned costs of moving offices. Green Alliance moved into new premises in August 2016, Expenditure securing good quality office space in the vicinity of Westminster for at least the next five years. We used £130k of general reserves, built up in the previous year, to refurbish and move Public sector % Individuals % Fundraising % Governance % offices. Business % NGOs %

Philip Parker, hon treasurer

Trust %

Charitable expenditure %

34 GREEN ALLIANCE ANNUAL REPORT 2016-17 6 / FINANCE AND FUNDRAISING REVIEW

The Green Alliance Trust Extract of the statement of financial activities for the year ended 31 March 2017

2017 2017 2017 2016 Restricted Unrestricted Total Total Funds£ Funds Funds Funds £ £ £ £ Income from:

Donations and legacies - 107,337 107,337 113,804

Charitable activities Political Leadership 412,071 - 412,071 240,173 Low Carbon Energy 121,663 179,269 300,932 303,018 Resource Stewardship 278,406 27,643 306,049 570,231 Natural Environment 71,806 - 71,806 227,888

Investments - 1,634 1,634 2,449

Total income 883,946 315,883 1,199,829 1,457,563

Expenditure on:

Raising funds: Fundraising - 24,597 24,597 20,986

Charitable activities Political Leadership 434,840 122,432 557,272 259,309 Low Carbon Energy 113,224 146,606 259,830 370,451 Resource Stewardship 317,616 116,920 434,536 451,683 Natural Environment 170,563 48,023 218,586 171,847

Total expenditure 1,036,243 458,578 1,494,821 1,274,276

Net income/(expenditure) (152,297) (142,695) (294,992) 183,287

Transfers between funds 43,987 (43,987) - - Reconciliation of funds Total funds brought forward 379,463 567,461 946,924 763,637

Total funds carried forward 271,153 380,779 651,932 946,924

35 GREEN ALLIANCE ANNUAL REPORT 2016-17 6 / FINANCE AND FUNDRAISING REVIEW

The Green Alliance Trust Extract of the balance sheet at 31 March 2017

2017 2016 £ £ £ £ Fixed assets Tangible fixed assets 18,379 7,757 Debtors and prepayments 255,091 309,484 Cash 643,173 866,645

898,264 1,176,129 Creditors Amounts falling due within one year (264,711) (236,962) Net current assets 633,553 939,167

Total assets less current liabilities 651,932 946,924

Charity funds Restricted funds 271,153 379,463 Unrestricted: funds 380,779 567,461

651,932 946,924

The full trustees’ annual report and accounts are available to view at www.green-alliance.org.uk

36

GREEN ALLIANCE ANNUAL REPORT 2016-17AND ACCOUNTS 2016-17 1 / CHAPTER TITLE

Thanks

We are grateful to every organisation and individual who contributed to our work in 2016-17

Funding was received from the following organisations in 2016-17:

£1,000 to £5,000 £5,001 to £20,000 £20,001 to £40,000 £40,001 to £60,000 £150,000 to £200,000

BP International CAFOD Greenpeace Esmée Fairbairn National Trust Campaign for Better Joseph Rowntree John Ellerman Foundation Transport Charitable Trust Foundation Campaign to Protect KestrelMan Trust Kingfisher Rural England Oak Foundation Kyocera ClientEarth Westminster Dong Foundation National Grid E3G WRAP Siemens Friends of the Earth Statoil Heathrow Airport The Samworth IEEP Foundation RES Viridor Resource Association Scottish Power Shell Tearfund

£200,000 plus European Climate Foundation MAVA Foundation

37 GREEN ALLIANCE ANNUAL REPORT 2016-17AND SUMMARY ACCOUNTS 2016-17 1 / CHAPTER TITLE

Members

Our individual members include those active in our network, eminent professionals in the fields of environment, business and government, or those distinguished in their careers in other spheres who wish to support our work. Members receive a quarterly email update and invitations to our major events.

Annual membership: £40 Donor members contribute above this amount

Life membership: £500

Current members Danielle Byrne William Gillis (at September 2017) Alison Cairns Sara Giorgi Lord Cameron of Dillington John Gordon Jamie Abbott Mark Campanale Matthew Gorman John Adams Pamela Castle OBE Dr Tony Grayling Syed Ahmed Harry Chichester David Green OBE John Alker Maureen Child Prof Michael Grubb Dr Amal-Lee Amin Giles Chitty Nigel Haigh OBE Tim Ash Vie Chris Church Stephen Hale OBE Anne Ashe Dr M J Clark Paul Hamblin John Ashton Roger Clarke Tony Hams OBE Robert Atkinson Lindsey Colbourne Helen Harris Alison Austin OBE Yolanda Collins David Harris Dr Mark Avery Tony Colman Sir Peter Harrop Janet Barber Tim Cordy Nick Hartley David Barker QC Martin Couchman OBE Dr Paul Hatchwell Alison Barnes Paul Court Ian Hawking Phil Barton Roger Cowe Dirk Hazell Clive Bates John Cox CBE Barbara Herridge Lord Bath Roger Crofts Roger Higman Toby Belsom Kate Davies Julie Hill MBE Mr T Bendixson Hannah Dick Dr Mayer Hillman Nick Bent Julie Doyle David Hirst David Bent Stephanie Draper Hannah Hislop Lord Berkeley Christine Drury Mark Hodgson Dr Robin Bidwell CBE Jane Durney Jana Hofmann Sean Birch Mairi Duthie Paula Hollings Jennifer Bird John Elkington Sarah Holloway Dr John Blunden Sara Eppel Stuart Housden Ronald Blythe Louise Every Alex House Dr Stephen Bolt Bill Eyres Catherine Howarth Duncan Brack Malcolm Fergusson Rupert Howes Tim Branton David Fitzsimons Jim Hubbard Chris Brown Catherine Fookes Chris Huhne Tom Burke CBE Tim Foxon Robert Hull Kate Burningham Justin French-Brooks David Hutchinson Sarah Burton Ray Georgeson Robert Hutchison Roger Burton Martin Gibson Merlin Hyman

38 GREEN ALLIANCE ANNUAL REPORT 2016-17AND ACCOUNTS 2016-17 1 / CHAPTER TITLE

Prof Tim Jackson Cllr Nicholas Paget-Brown Clym Tomas Stephenson Julian Jackson Philip Parker Lord Stevenson Michael Jacobs Sara Parkin John Stewart Becky James Dr Doug Parr Andrew Stirling Alex Jelly Mamta Patel Neil Stockley Prof Nicholas Jenkins Anthony Paterson Martin Stott Stanley Johnson Prof R J Pentreath Daisy Streatfeild Claire Jones Anthony Perret David Symons Terence Jones Charles Perry Joss Tantram FRSA Terry Jones Craig Peters Dr Richard Tapper Prof Andrew Jordan Hazel Phillips Derek Taylor Tristram Keech Adrian Phillips CBE Clare Taylor Sean Kidney Iain Pickles Tessa Tennant Angela King Prof Nick Pidgeon Guy Thompson Jean Lambert MEP Ben Plowden Alison Tickell Pippa Langford Anita Pollack Dr Bruce Tofield Lucinda Langton John Pontin Ben Tuxworth Nicola Leahy Don Potts Richard Usher Jeremy Leggett Mark Pritchard MP Annette Van Der Kolk Dr Paul Leinster CBE Alison Pritchard Jane Vaus Hywel Lloyd Denis Pym Jennifer Ware Robert Lowson Dr Kate Rawles Dr Michael Warhurst Simon Lyster Trewin Restorick Andrew Warren Ian MacArthur Dame Fiona Reynolds DBE Anne Weir Eleanor Mackay David Richards Alan Wheeler Dr Tom Macmillan Michael Roberts Dr Rowan Whimster Prof Richard Macrory James Robertson Prof David Wiggins Harini Manivannan Archie Robertson Hugh Williams Prof Aubrey Manning Nick Robins Rebecca Willis Mark Mansley Neil Rotheroe Prof James Wilsdon Mari Martiskainen Phil Rothwell Nicholas Wilson Deborah Mattinson Prof Stephen Salter Giles Wyburd Ed Mayo Prof Philippe Sands Sir Graham Wynne CBE Robert McCracken QC Jenny Saunders Lady Young Prof Jacqueline McGlade Diana Schumacher OBE Dr Jim McQuaid CBE Paul Scott Paul Meins Bhavika Shah Morice Mendoza Juhi Shareef Charles Millar Yasmin Shariff Peter Mitchell Ben Shaw Catherine Mitchell David Sinclair Ed Mitchell Jonathan Sinclair Wilson Karen Mitchell Rita Singh Margaret Morgan-Grenville Prof Jim Skea Dr Elizabeth Ness James Skinner David Newman Prof Peter Smith Adrian Newton Stephen Somerville Dinah Nichols Steve Sorrell Adam Ognall Dave Sowden Tom Oliver Godfrey Spickernell Prof Timothy O’Riordan Martin Spray Derek Osborn CB Ben Stafford Prof John Page Ralph Steadman

39 GREEN ALLIANCE ANNUAL REPORT 2016-17AND SUMMARY ACCOUNTS 2016-17 1 / CHAPTER TITLE

Donor members Life members

Andy Atkins David Andrew Anthony Bourne Dr Robert Barrington Richard Burnett-Hall Katherine and Ben Bell Tony Burton Bernie Bulkin Philip Douglas James Cameron Jack Easton Rodney Chase CBE Prof Paul Ekins Ian Christie Stephen Gee Andrea Cook OBE Dan Hamza-Goodacre Dr Nick Eyre Rachel Huxley Zac Goldsmith MP Ben Jewell Matt Gosden Robin Latchem David Green OBE Dorothy MacKenzie Emma Howard Boyd Peter Madden Paul Jefferiss Dr Peter Maddox Colin le Duc Duncan McLaren Thomas Lingard Graham Meeks Michael Massey Prof John Murlis John Midgley Sir Jonathon Porritt CBE Alice Page Jim Potter Michael Palin Dr Andrew Purkis OBE MT Rainey Nick Schoon Matthew Rhodes Alister Scott Chris Rose Philip Sellwood Penny Shepherd Neil Sinden Lord Thomas of Gresford Shaun Spiers Dr Tom Tibbits David Still Philip Wolfe Dr Robin Stott Gillian Thomas Jonathan Wallace Dr Steve Waygood Kay West Sheena Will

40 GREEN ALLIANCE ANNUAL REPORT AND ACCOUNTS 2016-17 1 / CHAPTER TITLE

41 Green Alliance 11 Belgrave Road, London, SW1V 1RB 020 7233 7433 [email protected] www.green-alliance.org.uk blog: greenallianceblog.org.uk twitter: @GreenAllianceUK The Green Alliance Trust Registered charity no. 1045395 Company limited by guarantee (England and Wales) no. 3037633 Registered at the above address